The big data revolution - the integration of vast amounts of data through Artificial Intelligence - has far-reaching economic implications, particularly for the financial industry and jobs in this industry. Why? And could AI potentially trigger the next financial crisis, as recently suggested by Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC)? HEC Paris Professor of Finance Thierry Foucault explored how data and algorithms are transforming investment decision-making and trading behavior in financial markets in a November Reskill masterclass. He also tackled the associated risks, and the implications for jobs in the financial industry. Extracts.
By Thierry Foucault
Marc Beretta’s RESKILL Masterclass focused on what he terms the "experience-based qualities for leadership development." These qualities were gathered from over 20 years of coaching top executives around the world. Drawing on over 20,000 hours of experience and real-life examples, Beretta identifies six core leadership qualities: awareness, agility, eco-friendliness, high standards, kindness, and co-visionary thinking. Beretta argues that such assets help leaders not only develop themselves but also foster healthier, more productive environments in their organizations. Extracts.
Despite advances in workplace equality, the gender gap in leadership persists. Women continue to be underrepresented in management positions, particularly in male-dominated sectors. This gap is not just a result of discrimination or lack of opportunity but is partly rooted in how societal expectations influence leadership aspirations. Ekaterina Netchaeva, Assistant Professor of Management and Human Resources at HEC Paris, is a leading researcher on gender dynamics in the workplace. Her extensive work, relayed by Bloomberg and Forbes, delves into the complexities behind why women aspire less to leadership roles than men. During her HEC RESKILL masterclass, Netchaeva explored the underlying causes of this leadership gap.
Many studies have attempted to estimate the potential effects of technological change on employment and the labor market in France. In March 2024, Emmanuel Macron received the first report from the Committee on Generative Artificial Intelligence, which partly utilizes the recent study by HEC economics professor Antonin Bergeaud. The report concludes that jobs directly replaceable by AI would only represent 5% of the jobs in a country like France, and automation could affect between 10% and 20% of workers, with a high prevalence among managers. In this article, we present the results of these analyses in context.
By Antonin Bergeaud
The linear “take-make-waste” business model is a recipe for killing the planet. With global circularity at 7.2 %, supply chains create enormous amounts of waste, a vital driver of the triple planetary crisis of climate change, biodiversity loss, and pollution. Recent research by Daniel Halbheer (HEC Paris) and his colleagues Stefan Buehler (University of St. Gallen) and Rachel Chen (UC Davis) shows how going circular by recycling end-of-life products can improve profit and reduce the corporate waste footprint.
By Daniel Halbheer
Organizations which are driven by purpose only succeed when this purpose aligns itself authentically with operations and strategy. And company leaders who coordinate teams or orient decisions play a crucial role: they are responsible for communicating clearly and unambivalently the firm’s purpose. This is at the heart of the research program crafted by the HEC Paris Purpose Center, as well as the article published in the HBR* by professors of strategy Rodolphe Durand and Ioannis Ioannou. Durand, the Director of HEC’s Purpose Center, shares his analysis in this February 15 masterclass. Here are his four key points.
Sales is an occupation known for its high turnover rates. And for good reason: an HEC study shows that salary increases for salespeople tapers off within three years if they stay put. The study’s co-author, HEC Professor of Marketing Dominique Rouziès held a RESKILL Masterclass on October 19 to discuss her research on the value of experience. Rouziès and her colleagues (Professors Keshavarz, Kramarz, Quélin and Segalla) analyzed paycheck data of around 25,000 French salespeople and sales managers over a 20-year period to better understand the links between experience (i.e., careers) and compensation. These are five lessons Professor Rouziès shared in her Masterclass.
How can the E.U. respond to the growing clamor for more citizen participation in its institutions? In a wide-ranging podcast, the Jean Monnet Professor in EU Law, Alberto Alemanno, proposes a permanent European Citizens Assembly to bring E.U. voters and their representatives closer together. The HEC professor also explores how lobbies can become a force for promoting social change. And he points out structural problems within the E.U. which are stymying the continent’s youth. Finally, Alemanno’s research with fellow academic Elie Sung pinpoints the oft-neglected impact of lobbies on judicial courts by interest groups– which are having devastating effects on societal issues like women’s and LBGTQI+ rights. Extracts.
ESG, a tool used to quantify sustainability, is exposed to criticism and allegations of greenwashing. In this RESKILL Masterclass session, Hélène Löning, HEC Paris Associate Professor of Accounting , argues that, despite its struggles and flaws, ESG can help make companies more accountable towards all stakeholders and society, not just investors. She shares with viewers detailed insights into ESG metrics. The Masterclass was recorded on June 29, 2023, and is available on YouTube here. You can also find all the questions and comments in the LinkedIn live.
The current uncertain and complex environment is further driving research on how business leaders should respond in the workplace. In this RESKILL Masterclass, Brad Harris, Professor of Management and Human Resources at HEC Paris, discusses the questions of building trust, creating healthy dynamics and enabling an empowered culture needed to respond to the challenges the 21st century is throwing up. It was recorded on March 23, 2023, and is available on YouTube. You can also find all the questions and comments on the LinkedIn Live. Here are the three key takeaways... and a summary of leadership qualities.